Adastra Labs Holdings Ltd. (XTRX) AI Stock Analysis

• Market Cap: C$1.60M
• Dividend Yield: N/A
• Average Volume (3M): 147.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.39
• Revenue Growth: 13.58%
• EPS Growth: -276.86%
• Country: CA
• Employees: N/A
• Sector: Healthcare
• Sector Strength: 48
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -2.36
• Shares Outstanding: 5,597,050
• 10 Day Avg. Volume: 29
• 30 Day Avg. Volume: 147
• PEG Ratio: -0.02
• Price to Book (P/B): 0.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.86
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Adastra Holdings Ltd. faces significant challenges with high financial leverage and negative profitability metrics, impacting its overall score. Despite strong revenue growth, technical indicators suggest bearish momentum, and the valuation remains unattractive with a negative P/E ratio. The appointment of a new director is a positive step but does not immediately alleviate the existing financial and operational challenges.

Adastra Labs Holdings Ltd. Business Overview & Revenue Model

Company Description

Adastra Holdings Ltd. operates as a cannabis extraction and processing solutions company. The company offers cannabis analytical testing, and cannabis processing services. It provides processing solutions to licensed cultivators of cannabis and hemp; and supplies cannabis extracts to qualified Canadian and international business-to-business partners. The company was formerly knowns as Phyto Extractions Inc. and changed its name to Adastra Holdings Ltd. in September 2021. Adastra Holdings Ltd. was incorporated in 1987 and is based in Langley, Canada.

How the Company Makes Money

Adastra Labs Holdings Ltd. generates revenue primarily through the sale of its cannabis and hemp-derived products. The company operates extraction facilities that process raw cannabis and hemp into refined products such as oils and concentrates, which are then sold to wholesalers, distributors, and directly to consumers. Adastra may also engage in white-label and private-label production agreements, allowing other brands to use its processing capabilities to create their own product lines. Significant partnerships with distributors and retailers, along with compliance with regulatory standards, play a crucial role in expanding their market reach and driving sales.

Adastra Labs Holdings Ltd. Financial Statement Overview

Summary

Adastra Labs Holdings Ltd. shows strong revenue growth and improving cash flow metrics, but faces challenges in profitability and leverage, indicating potential financial risk despite operational efficiency improvements.

Income Statement

Adastra Labs Holdings Ltd. has shown a positive revenue growth trajectory, with a significant increase in revenue from 2019 to 2023. However, profitability remains a challenge, as evidenced by negative EBIT and net income margins. The gross profit margin is relatively healthy, indicating potential for operational efficiency improvements.

Balance Sheet

The company's balance sheet reflects moderate leverage with a debt-to-equity ratio showing an increase in total debt. Stockholders' equity has decreased, indicating potential financial risk. However, the equity ratio remains stable, reflecting a balanced asset allocation.

Cash Flow

Cash flow statements reveal a positive trend in operating and free cash flow over recent years, suggesting improving cash management. The operating cash flow to net income ratio indicates better cash conversion despite negative net income. Free cash flow growth is evident, though capital expenditures have been a consistent outflow.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
22.75M	22.22M	13.30M	5.63M	2.50M	0.00
	Gross Profit
8.30M	7.03M	6.11M	1.94M	785.58K	-78.17K
	EBIT
-925.47K	-1.79M	-800.00K	-2.39M	-7.10M	-1.12M
	EBITDA
-626.59K	-1.41M	-2.62M	-1.39M	-7.07M	-2.34M
	Net Income Common Stockholders
-3.36M	-3.54M	-4.28M	-2.75M	-8.07M	-2.66M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.38M	1.38M	1.01M	744.54K	1.15M	2.38M
	Total Assets
11.35M	32.34M	31.80M	28.76M	13.74M	11.35M
	Total Debt
5.39M	3.64M	3.95M	3.59M	2.50M	5.39M
	Net Debt
3.02M	2.26M	2.93M	2.85M	1.36M	3.02M
	Total Liabilities
6.27M	17.66M	13.57M	6.38M	3.65M	6.27M
	Stockholders Equity
5.08M	14.69M	18.23M	22.37M	10.09M	5.08M
Cash Flow		Free Cash Flow
-342.74K	1.18M	694.07K	-1.64M	-4.63M	-5.93M
	Operating Cash Flow
-56.28K	1.86M	1.32M	-1.05M	-2.83M	-1.56M
	Investing Cash Flow
-286.46K	-681.05K	-1.03M	-262.81K	-1.79M	-4.25M
	Financing Cash Flow
-532.61K	-815.12K	-22.55K	915.98K	3.40M	5.83M

Adastra Labs Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:XTRX, the sentiment is Negative. The current price of 0.28 is below the 20-day moving average (MA) of 0.33, below the 50-day MA of 0.35, and below the 200-day MA of 0.54, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 28.53 is Positive, neither overbought nor oversold. The STOCH value of -6.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:XTRX.

Adastra Labs Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	52 Neutral	$5.22B	3.55	-44.39%	2.82%	15.40%	-0.09%
XTRX	40 Underperform	C$1.60M	―	-164.06%	―	13.58%	-276.86%

Adastra Labs Holdings Ltd. Corporate Events

Adastra Holdings Appoints New Director to Board

Adastra Holdings Ltd. has announced the appointment of Mark Qvist to its board of directors, effective February 28, 2025. Mr. Qvist brings over 25 years of experience in geotechnical, environmental, and botanical sectors, currently serving as CEO of Life Cycle Botanics Ltd. His diverse background in business operations and regulated industries is expected to positively impact Adastra’s continued success. This strategic appointment follows the resignation of Andrew Hale from the board, as announced earlier.